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    When a company purchases shares of its own common stock

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    A company purchases 1,000 shares of its own previously issued $5 per common stock for $12,000. Assuming the shares are held in the treasury, what effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders' equity? The company's treasure stock is resold for $15,000.

    What effect does this transaction have on (a) net income, (b) total assets, (c) total paid-in capital, and (d) total stockholders' equity?

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    https://brainmass.com/business/accounting-for-corporations/company-purchases-shares-own-common-stock-553543

    Solution Preview

    See the template of assets and equity provided for you with the transactions mapped to the accounts they impact (excel, attached). As you ...

    Solution Summary

    See the template of assets and equity provided for you with the transactions mapped to the accounts they impact (excel, attached). As you see here, the two lines highlighted are the repurchase and reissue...

    $2.19